On this episode of House Flip Masters Holly is joined by guest Dirk Watters. Dirk is a San Diego investor with 3 and a half years experience. Dirk has a varied profile; he has dealt with lease options, wholesales, rehabs, and high-end deals.
Dirk grew up around real estate - his father was a commercial developer – he saw all that his dad was involved with but decided that commercial development wasn’t for him due to the length it takes for a deal to close. Dirk went to college at the University of Wisconsin and worked as a sales manager at an insurance company for a couple of years. Dirk liked his job but didn’t love it and shortly after he started to get the real estate itch. Dirk says he went to the Bigger Pockets forums and started educating himself on the real estate world. Dirk started off with wholesale events, which set him apart from most people because the people he talked to had not heard of what he was doing just yet. Dirk met some contacts at a seminar and went into business with them doing some high-end, multimillion-dollar, flips – which were his first flips ever. Presently Dirk works with partners in San Diego that work with flips that are homes $500,000 and up. Sometimes they venture into flips that are $1 million dollars.
Holly asks Dirk to share what his influences are being newer into the real estate world. Watters says that he did a few courses, he took some from Robert Kiyosaki and that is when he says he had that moment of commitment where he decided that he was ready to dive in and not turn back. Holly and Dirk both agree that you have to have commitment to be successful in this business. Dirk advises listeners that there are great free resources available to those people that are just starting out. Holly feels that paying for classes and programs sometimes helps to make you more accountable for your business. Dirk also advises listeners to not go out in this business as a lone wolf, partner up with people who are experienced and are willing to help guide you along the way.
Holly asks Dirk to share what his first rookie mistake was – Dirk says that he was working on a flip and got caught up in all of the finishes; the flooring, cabinets, and countertops – and he went over budget by $20,000. Because of this mistake a great deal turned out to only be an okay deal. Holly agrees that she also made this same mistake on her first flip.
Holly asks Dirk to share what some of his strategies are when he is dealing with sellers. Dirk shares that for a while one of his strategies was to go after individuals in foreclosure. He had a team that would go out and door knock to find deals for him. He had one agent who was out door knocking and she found someone who was living in a camper on the front yard of the property. The owner of the home was living in a camper and renting out his home so that he could make the mortgage payments. Dirk was able to go in and help this seller turn his life around. Dirk took this house over as a “Subject to.”
Holly is impressed with Dirk’s knowledge on “Subject to” and asks him to share what that means for listeners who may not know about this strategy method. “Subject to” Means that you’re taking over the property “subject to” the existing mortgage, you are taking over the payments for the length of time that it takes to rehab the property until you are able to sell it. Holly reminds listeners to not discount the value that realtors bring to deals, without a relator Dirk may not have found this deal. Dirk and Holly both agree that it is vitally important to have a team of great agents on your team because as an investor you may not have the time to go out and look for these deals and it helps to have someone who is looking for you.
Holly asks Dirk to share what the most frustrating part of being an investor is. Dirk prides himself in being punctual and finds that he dislikes the waiting game. He advises listeners to stay on top of their projects and make sure everything stays on a time schedule by staying organized. Dirk uses ‘Slack’ to help keep his team all on the same page because he finds that people pay more attention to notifications that are for business versus a text message or an email. Holly shares that she uses Google Docs to help her stay organized with her team.
Dirk wants to advise listeners to remain resilient when it comes to this business, because things will go wrong but that is not the end of the deal. Holly says that while she doesn’t know everything she knows someone who does know what she might have a problem with. Remain resilient and resourceful to be successful in this business.
If you are interested in getting in touch with Dirk you can visit his website
www.DirkWatters.com or even give him a call at (619) 839-9757
Dirk also has a podcast you can listen to called The Real Estate Growth Hacker by Dirk Watters
You can also find Dirk on Facebook
On this episode of House Flip Masters Holly is joined by guest Damion Lupo. Damion is an entrepreneur at heart starting his first business at age 11 – since than he has started 30 more businesses. Damion is also the founder of his own form of martial art, Yokido. Damion paid for his first rental house on a Visa card and bought 150 more houses in a 7-year time span and then went through a $20 million dollar meltdown in 2008. Today Damion runs an Austin-based FinTech dedicated to disrupting Wall Street. He has written 5 books and 2 more are being released in 2017.
Damion got the entrepreneur bug when he was a young boy in Alaska buying and selling Nintendo games. When he got older Damion went to college and was asked to leave because he started a bookstore on the campus that was putting the college bookstore out of business.
When Damion went through his business meltdown in 2008 he was working on buying properties because he wanted to do one deal where he would get paid multiple times over because the ides of flipping homes and getting paid once did not appeal to him – Damion wanted to become the bank, he wanted to go home and still have his money make money for him. Damion became very successful with this strategy and kept plugging away. Holly asks Damion to share with listeners what happened with his business when the crash happened and what he did after that. Damion shares that in late 2006 he was involved with 7 different projects - homes near Graceland, a condo development - but a year later he was dealing with foreclosures and lenders backing out. Damion learned from this that plans can be good but when you are faced with things that you can’t see or plan for you find out who you really are. When the crash happened Damion starting giving money back and properties back and started to unravel the mess that he was in. Damion admits that after the crash he ignored what happened for a few years and acted like it didn’t happen until he realized that he needed to face the music. When a person goes through a tragedy they need to fix it from the inside out, he needed to realize what was going on with himself so that he could heal from the crash and learn from it and make sure that it didn’t happen to again. Damion says that in his business he feels that it is important to work with people who have experienced a bad deal or something gone wrong because when things don’t go as planned he wants to make sure that he is working with someone who is able to stay on top of their game when the plan falls through.
Holly asks Damion to explain what he means by the green and red arrows of wealth. Damion says that in real estate you mostly see just green arrows going up. Damion met a woman who was always watching the news and looking at the stock market, seeing the green arrows and red arrows – she felt that when the market was good she wanted to celebrate and when the market was bad she wanted to get out. Damion helped her to get off the Wall Street rollercoaster to a point where the green and red arrows no longer mattered to her and she did not watch the news anymore to see where she stood financially.
Holly asks Damion to explain what he means by the Wall Street rollercoaster, he says that when you are investing you want to be actively involved in your investments and that you should not just check out. Damion likes precious metals because you can control them, the Wall Street rollercoaster is things you cannot control, and you are subject to fees and manipulation that you have zero influence over.
Holly wants to know Damion’s take on retirement and why he hates the word ‘retirement.’ Back in older times retirement was related to machinery or animals no longer being of use and they would get rid of them. People are so happy to retire and basically happy to be done and stop contributing to the universe. Damion says that what people need to be doing is setup for financial security and financial freedom so that you don’t run out of money before you run out of life – Damion shares a shocking statistic that the average male dies 3 years after retirement.
Damion started a business a year ago called Total Control Financial to show people that they can get off the Wall Street rollercoaster and take control of their money. These people are able to take their money that they have in a 401K or other investment programs and invest it into precious metals or real estate so that they are actively involved in their financial investments. Damion’s company helps people to understand where their money is going and what it is doing for them. Because you are self-directing your money this program is not for people who are in the blame game and do not want to be held accountable for what happens with their money when they decide where they are putting it.
If you are interested in learning more from Damion you can visit his website www.TotalControlFinancial.com/Holly - at this link you will get a copy of his book to see if the strategy he teaches is something that you might be interested in. You can also reach Damion on his website.
You can also connect with Damion on
On this episode of House Flip Masters Holly is joined by guest Sharon Houseworth. Sharon has been a real estate investor for just a couple of years which is exciting because she is newer and also successful at what she does.
Before Sharon jumped into real estate she was in a couple industries. She worked with her mother who worked as a life and health agent - Sharon admits that this really wasn’t her thing. After that she went into the administrative field most recently a construction company which always had her interest. All of these jobs led her to property management and fixing and flipping.
When Sharon when was doing property management she says that she was kind of just thrown into it. Her family had always had rentals and when her mom got older she helped her to manage those properties. In 2009, her uncle passed away and Sharon inherited the 34 units that he owned and became the property manager for those properties. While she isn’t a licensed property manager she was still able to manage her own properties legally. Holly asks Sharon how much time these properties took for her to manage each week - 30 hours is what Sharon was working when she was managing these properties. She found that she had a lot of work because the properties had a lot of deferred renovations that she had to take care of and get up to date and up to code to make sure that she was protected as well as her tenants. Sharon until recently was managing these properties on her own, calling maintenance when things needed to be fixed and collecting rent from the tenants. Sharon recently turned over her property management to a licensed property manager so that she could free up her time. Sharon says that all of her time as a property management has taught her a lot but decided that she needed to move forward and do something different.
After the passing of her mother Sharon recalls hearing a commercial on the radio about learning going to a seminar to learn to fix and flip so she decided to do it. Sharon says that learning to fix and flip has been completely life changing for her.
Holly asks Sharon to share with listeners how she found a deal in Fallbrook that coincidentally ended up being on the same street as a flip that Holly was working on. Holly asks Sharon to share her insight on this deal, as well as her need to adapt to certain elements of this specific deal. Sharon found this deal by getting involved in an investment club for women after completing a 60-day challenge that they offered. From that challenge came this deal, Sharon was called by a realtor about this deal - this property that she was tipped off on was that this property was going to go to auction in 3 weeks. Sharon says that one of the biggest thing that she’s learned is that people come before profit and she was so happy to do this deal because she was able to help the man this man by keeping a foreclosure off his record, his house out of auction, as well as giving him $40,000 in his pocket at the end of the day. Sharon called some investors who might be interested in investing as well as investing in this area which is a little off the beaten path. Sharon cashed out an annuity as well as had a hard money lender who was willing to take a chance on her with her first deal. Sharon decided that she wanted to do this deal with her own money so that if she made a mistake, she would rather do it with her own money. Holly reminds Sharon and listeners that there is no such things as win or lose when it comes to a deal it is win or learn because you don’t know what you don’t know and the only way you will learn is by making those mistakes and that each realtor has bumps in the road and for those bumps they are made smarter. With this property Sharon needed to extend on it twice and was only charged 1 point on the second extension. Holly reminds listeners that there is always a charge for an extension. Sharon owned this property for close to a year when she deiced to refinance the house with another hard money loan which helped to bring down the interest rates as well as the payments to the home. After she got the reinforce Sharon knew that she had to get a tenant into the property - wanting to utilize all free services available to her she put an ad on Craigslist and got responses within hours. The person who contacted her was a realtor who wanted to be closer to work and they were a right fit for Sharon and they are still living in the home now.
Three weeks after these tenants moved in to this property Sharon experienced some maintenance issues. The tenants woke up to the whole downstairs covered in 2 inches of water that appeared to be coming from under the kitchen sink. The day of this disaster also happened to be on the day of the tenants daughter’s wedding - but Sharon laughs and reminds us that it can always be worse. Because of this leak the tenants were displaced from the home for almost 2 months. Sharon reminds us that it is vitally important that you require renters to have renters insurance so that their items and lifestyles are protected if something should go wrong. Because Sharon also had the proper insurance she was also covered on her end and was able to not worry about loss of rent because the insurance covered that for her - insurance also paid for all the damage incurred from that loss. Holly reminds us that is is important to get your insurance in place and make sure that you get the right insurance in place.
As if this property didn’t have enough going on it is as of late that the neighbor uses her property as an Airbnb and the current tenants do not care for it because the guests can often be loud and there are always people coming and going. Once the lease is up there is a business that is interested in renting Sharon’s property which is an entirely different realm of investing for Sharon that she is excited to learn about. The moral of Sharon’s story is to not panic if your first plan does not work because there is always another path that you can take that property down.
Holly asks Sharon what advice she would give to someone new and starting out. Sharon says to keep moving forward every day and to be committed to this business even if you cannot do this full time always have investing as your end goal because there is a lot of money to made and a lot of people to be made. Sharon says that investing is a team sport and she has met so many fabulous people who are always willing to help her along the way.
If you are interested in getting in touch with Sharon you can reach her phone or text anytime at (406)-461-3470 or email her at Sharon_Houseworth@hhpropertysolutions.com you can also find Sharon on Facebook at https://www.facebook.com/sharon.houseworth